Chap. 282.—An ACT to Provide for the Funding and Payment of the Pub-
lic Debt.

Approved March 20, 1871.

Whereas in the formation of the state of West Virginia,
there were included within its boundaries about one-third of
the territory and population of the state of Virginia; and
whereas, in the ordinance authorizing the organization of said
state, it was provided that the said state shall take upon itself
a just proportion of the public debt of the commonwealth of
Virginia prior to the first day of January, eighteen hundred
and sixty-one, which provision has not yet been fulfilled,
although repeated and earnest efforts in that behalf have been
made by this state, and will continue to be made as long as
may be necessary; and whereas the people of this common-
wealth are anxious for the prompt liquidation of her portion
of said debt, which is estimated to be two-thirds of the same ;
and whereas it has been suggested that the authorities of West
Virginia may prefer to pay that state’s portion of said debt
to the holders thereof and not to this state, as the constitu-
tion of this state provides: now, therefore, to enable the state
of West Virginia to settle her proportion of said’ debt with
the holders thereof, and to prevent any complications or diffi-
culties which might be interposed to any other manner of set-
tlement, and for the purpose of promptly restoring the credit
of Virginia by providing for the prompt and certain payment
of the interest upon her proportion of said debt as the same
shall become due; therefore,

1. Be it enacted by the general assembly of Virginia, That
from and after the passage of this act, no bond, certificate, or
other evidence of indebtedness, shall be issued for any portion
of the debt of this state; nor shall any interest be paid upon
any part or portion of said debt, except as hereinafter pro-
vided.

2. The owners of any of the bonds, stocks, or interest cer-
tificates heretofore issued by this state, which are recognized
by its constitution and laws as legal, except the five per centum
dollar bonds, and what are known as sterling bonds, but in-
cluding the stock of the old James river company, and the
bonds of the James river and Kanawha company guaranteed
by this state, may fund two-thirds of the amount of the same,
together with two-thirds of the interest due or to become due
thereon, to the first day of July, eighteen hundred seventy-one,
in six per centum coupon or registered bonds of this state of
the denominations of one hundred, and multiples thereof, dated
that day, and to become due and payable in thirty-four years
after date, but redeemable at the pleasure of the state, after
ten years, the interest to be payable semi-annually on thie first
days of January and July in each year. The bonds shall be
made payable to order or bearer, and the coupons to bearer, at
the treasury of the state, and bonds payable to order may be
exchanged for bonds payable to bearer, and registered bonds
may be exchanged for coupon bonds, or vice versa, at the op-
tion of the holder. The coupons shall be payable semi-an-
nually, and be receivable at and after maturity for all taxes,
debts, dues, and demands due the state, which shall be so ex-
pressed on their face; and the bonds shall bear on their face a
declaration to the effect that the redemption thereof is secured
by a sinking fund provided for by the law under which they
are issued. The holders of the five per centum dollar bonds
may in like manner fund the same in like bonds, bearing, how-
ever, five instead of six per centum interest. In the funding
herein authorized, for any fractional sums Jess than one hundred
dollars, certificates shall be issued bearing the same date and
rate of interest, and payable at the same time as the bonds
issued under this section; which certificates, in sums of one
hundred dollars, or any multiple thereof, shall be exchangeable
for bonds of the character herein authorized to be issued; and
new certificates of like character may be issued for any frac-
tional sums less than one hundred dollars which may remain
jn making such exchange.

3. Upon the surrender of the old and the acceptance of the
new bond for two-thirds of the amount due as provided in the
last preceding section, there shall be issued to the owner or
owners, for the other one-third of the amount due upon the old
bond, stock, or certificate of indebtedness so surrendered, a
certificate bearing the same date as the new bond, setting forth
the amount of the bond which is not funded as provided in the
last preceding section, and that payment of said amount with
interest thereon at the rate prescribed in the bond surrendered,
will be provided for in accordance with sich settlement as
shall hereafter be had between the states of Virginia and West
Virginia in regard to the public debt of the state of Virginia
existing at the time of its dismemberment, and that the state
of Virginia bolds said bonds, so far as unfunded, in trust for
the holder or his assignees: and provided further, that until
such final settlement with West Virginia, there shall be paid
upon what are known as sterling bonds, in the manner now
prescribed by law, two-thirds of the interest accruing on the
principal of said bonds, after July first, eighteen hundred and
seventy-one; and for the interest accrued to said date certifi-
cates dated on that day shall be issued, drawing the same rate
of interest as the bonds, two-thirds of which shall be paid as
provided to be paid-on the bonds. The remaining one-third
of unpaid interest, both on the bonds and certificates, shall be
payable in money, and the principal of said certificates In new
sterling bonds of the same character as the old, in accordance
with such final settlement as shall be made with West Vir-
ginia.

4.°The treasurer is hereby authorized and directed to forth-
with cauge to be prepared, engraved or lithographed, registered
bonds and bonds with coupons and certificates of the character
mentioned in the second and third sections of this act; and
when prepared, shall commence the issuance of the same as
herein provided. The bonds and certificates shall be signed by
the treasurer, and countersigned by the second auditor; the
coupons shall be signed by the treasurer, or a fac simile of his
signature shall be stamped or engraved thereon. Each denomi-
nation of bonds herein authorized to be issued, both registered
and coupon, shall constitute a series, and the bonds of each
series shall be numbered from one upwards, as they are issued ;
and the coupons in addition to the number of the bond to
which they are attached, shall be numbered from one to sixty-
seven. Each class of certificates authorized to be issued by
this act shall be numbered, respectively, from one upwards,
and in addition thereto, each certificate shall contain the num-
ber and date of the bond or certificate on account of which it
is issued. Each bond, certificate of stock, and interest certifi-
cate, to be funded as herein provided, shall first be delivered
to the second auditor, who shall calculate and- determine the
amount for which a bond shall be issued, and the amounts for
which certificates shall be issued, under the second and third
sections of this act; which calculation shall be endorsed, dated
and signed by him on the back of such bond, certificate of

f stock, or interest certificate, and he shall cause a proper regis-

try thereof, together with the date aud number of the bond,
certificate of stock, or interest certificate, to be made and kept
in his office. After such endorsement and registration, the
second auditor shall deliver the bond, certificate of stock, or
interest certificate, to the treasurer, who shall thereupon de-
liver to him a bond or bonds and certificates of the character
named in the second and third sections of this act, duly signed
and numbered, for the several amounts, respectively, accord-
ing to said endorsement. The second auditor, after making a
proper registry of said bond or bonds, and certiticates to be
kept in his office, shall deliver the same to the person entitled
to them. The treasurer shall, by proper endorsement, written
or stamped, upon each bond, certificate of stock, or interest
certificate so surrendered and delivered to him, cancel the
same, and endorse thereon the date of such cancellation, and
shall preserve the same in his office until otherwise directed by
law. The treasurer shall also have made and preserved in his
oftice a proper registry of every bond and certificate delivered
by him to the second auditor, and whenever a coupon bond
shall be issued payable to the order of any person or firm, he
shall secure and preserve the signature of .such person or firm
as a part of such registry whenever practicable.

). Whatever sum may be realized from the claims of this
state against Selden, Withers and Company, and tke Chesa-
peake and Ohio caual company, and from the sale or disposi-
tion of the stocks and bonds, and debts owned by the state in
and against any and all railway and other improvement compa-
nies, and all sums which may be realized from the claims of this
state against the United States, and from any sales of any real
estate now belonging to the commonwealth, shall be paid into
the treasury of the state to the credit of the sinking fund

‘hereby authorized and created. In the year eighteen hundred

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and eighty, and annually therearter, until all the bonds issued
under and by authority of this act shall have been paid, there
shall be levied and collected, the same as other taxes, a tax of
two cents on the one hundred dollars of the assessed valuation
of all the property, personal, real, and mixed, in the state,
which shall be paid into the treasury of the state to the credit
of the sinking fund. The treasurer, the auditor of public ac-
counts, and second auditor are hereby appointed commissioners
of the sinking fund, and shall have (a majority acting) the con-
trol and management thereof, and shall annually, or oftener,
apply whatever sum or sums may be to the credit of the sink-
ing fund, to the purchase and redemption of bords issued by
authority of this act.

6. All necessary expenses incurred in the execution of this
act shall be paid out of any moneys in the treasury not other-
wise appropriated, ‘on the certificate of the correctness of the
same, signed by the treasurer and second auditor, and ap-
proved by the governor.

7. This act shall be in force from and after its passage.